College and FAFSA Planning

Strategic Planning for College Costs and Financial Aid

For families with college-bound children, college planning is one of the most important—and complex—components of an overall financial plan. With the cost of college continuing to rise, families are often asking:

• What is the best way to pay for college?

• How much should we be saving each year?

• Will we qualify for financial aid?

• Are there strategies to increase financial aid awards?

These are exactly the questions we help families answer through proactive college and FAFSA planning.

The Importance of Advanced College Planning

College planning is rarely a last-minute decision. Because the cost of higher education is significant, it typically takes many years of intentional saving and planning to prepare effectively.

Advanced planning allows families to:

• Choose the most efficient savings vehicles

• Understand future cash-flow needs

• Avoid costly planning mistakes

• Make informed decisions well before college applications are submitted

College Savings Strategies

There are several ways families can save for college, each with different tax and financial aid implications.

Common college savings vehicles include:

• 529 College Savings Plans

• Brokerage Accounts

• Coverdell Education Savings Accounts

We help clients evaluate:

• Which accounts make the most sense based on income, assets, and goals

• How savings impact financial aid eligibility

• What happens if funds are left over after college

• What options exist if a child does not attend college

Understanding the flexibility—and limitations—of each savings vehicle is critical.

Understanding FAFSA and Financial Aid Calculations

The FAFSA process has changed significantly in recent years, which has altered how financial aid is calculated and awarded.

One major change involves how families with multiple children in college are treated:

• Historically, the Expected Family Contribution (EFC) was divided among multiple students

• Under current rules, the Student Aid Index (SAI) is applied fully to each child

• This change has dramatically reduced need-based financial aid for many families

Because of these changes, many families are surprised by how much—or how little—aid they qualify for.

Strategies to Improve Financial Aid Outcomes

When appropriate, there are financial planning strategies that can help increase financial aid eligibility, including:

• Asset positioning strategies

• Income-timing considerations

• Coordinating savings and spending decisions

• Evaluating parent vs. student asset ownership

However, there are also situations where a family’s income or assets are simply too high to qualify for need-based aid. In those cases, we help clients avoid unnecessary planning complexity and focus on the most efficient way to fund college costs.

Public vs. Private Colleges: FAFSA vs. CSS Profile

Financial aid calculations differ depending on the type of school.

• Public colleges typically rely on FAFSA calculations

• Private colleges often require the CSS Profile, which uses different formulas and considers additional financial data

Understanding which methodology applies can significantly impact planning decisions.

Using Student Loans Strategically

In some cases, families choose to incorporate student loans into the college funding strategy.

Important considerations include:

• Federal vs. private loans

• Interest rates and repayment terms

• When interest begins accruing

• Parent-assisted repayment strategies

Loans are not inherently bad—but they must be used intentionally and with a clear repayment plan.

State-Specific College Planning Considerations

Certain states offer unique programs that can help reduce college costs.

For example:

• New York’s Excelsior Scholarship may provide free tuition at state colleges for families under specific income thresholds

• These programs often come with conditions, such as in-state residency or post-graduation employment requirements

• Failure to meet those conditions can convert grants into loans

We help families understand the fine print before committing to these programs.

How College Planning Fits Into the Bigger Picture

College funding decisions impact:

• Retirement planning

• Cash flow

• Tax strategy

• Long-term financial security

Our role is to help families balance paying for college without jeopardizing their own financial future.

Contact Us . . . .

All of our services start with a complimentary consult. No high pressure sales tactics. We are financial planners, not salesmen.

About Our Firm:  Greenbush Financial Group is an independent registered investment advisory firm based in Albany, New York, that provides four main services to clients: fee-based financial planning services, investment management, employer-sponsored retirement plans, and retirement planning services.  The firm serves clients locally in the Albany region and virtually across the United States.

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